Spring2012Stone301_06 - Money &amp; Banking (220:301:06)...

Money & Banking (220:301:06) Spring 2012 Dr Raymond Stone NJ Hall --Room 106B E-Mail: rstone@smra.com Office Hours: 3:15-4:00 Mondays and Wednesdays IMPORTANT--all inquiries regarding homework, etc, should be directed to my assistant MBclass@smra.com Class meets Mondays/Wednesdays 4:30pm to 5:50pm Room 213 Murray Hall, CAC Prerequisites: Eco 102 & 103 (This is a lower level elective) Money & Banking The credit rating of US Treasury debt has recently been downgraded by Standard & Poors. The Financial Crisis has resulted in significant innovation on the part of the Federal Reserve. The Fed has addressed the so-called "Zero-Bound" issue. That is, what can be done to support financial markets and the economy once the nominal policy rate has been reduced to zero. New tools have been added to the policy tool-kit. A new era of Financial Regulation is taking hold. The role of Banks versus other lending institutions (shadow banks) is changing. Concepts, such as the role of asset prices in monetary policy, the Too Big to Fail debate, etc have been re-thought. Welcome to Money & Banking. These topics and more will be discussed in class. We will study core topics addressed in the text, as well as, more current topics. Final Exam To avoid any confusion it is policy to display the date and time of the final exam on the front page of the syllabus. Date: May 4, 4:00pm Grading Policy First Exam 40% Final Exam 50% Assignments 10%

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Make-Up Exams will only be given under extraordinary circumstances. Students should check with me before missing an exam to see whether their particular circumstances meet my very limited definition of extraordinary. Learning Outcomes Students who satisfactorily complete Money & Banking will understand the role of money and banks in the broader economy. Specifically, students should garner an understanding of the unique role of banks in the financial system. Students will learn how banks and other financial institutions make money, and allocate credit. Students will also have an appreciation for the money markets and bond market. Students will also learn the relevance of the Federal Reserve and related central banking topics, including the causes, policy responses, and lessons associated with the current financial market crisis. Attendance Policy Students are expected to attend every class. While I understand that such is not always possible, students should be aware that I will not provide individual review sessions. Moreover, students should understand that it is impossible to pass this course without regular attendance . Students are expected to attend all classes; if you expect to miss one or two classes, please use the University absence reporting website: http://sims.rutgers.edu/ssra/ to indicate the date and reason for your absence. An e-mail is automatically sent to me. Other

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